The Canada Pension Plan Investment Board (CPPIB) has agreed to sell Air Distribution Technologies to Johnson Controls for US$1.6 billion ($1.76 billion).
The CPPIB acquired Air Distribution from Tomkins in 2012 for US$1.1 billion, of which approximately US$500 million was funded with equity from the CPPIB. Upon closing of the proposed sale, it is expected that the CPPIB will receive proceeds of about US$1 billion.
“We have developed a close partnership with the management team of Air Distribution. We think highly of them and continue to believe Air Distribution is a leading HVAC business with excellent brands,” says André Bourbonnais, senior vice-president, private investments, with CPPIB. “It was a difficult decision to sell the business, and we wish the Air Distribution team continued success.”
Based in Dallas, Air Distribution is a leading provider of innovative air distribution and ventilation solutions for residential and non-residential buildings as well as air movement and control solutions for industrial and infrastructure applications.
The sale is expected to close by the end of July 2014 and is subject to customary closing conditions and regulatory approvals.
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